How many people ride the system in total? What is it, four divisions? City Transit, Regional Rail, Victory, Frontier?
80 percent of the rides on the entire system on City Transit?
Okay. And what proportion of it, even the Regional Rail, is within Philadelphia?
50 percent. Okay. And let's talk a little bit about on 393 Whole - Operating Budget - 5/4/04 the operating subsidy side. Now, the City of Philadelphia, your budget request with us is... Is it 57?
Fifty-seven three. Right. And where is that reflected in your budget here, and how does that compare to our partners at SEPTA?
The City... Philadelphia, from a budget standpoint, is 56.1 million, Montgomery County is 3.8 million, Delaware County is 6 million, Chester County 1.3, and Bucks County 1.9 million of the local match.
Okay. So the total operating subsidy is 69.1, and of that the City of Philadelphia is 56.1; is that right?
Of local. Of local 394 Whole - Operating Budget - 5/4/04 match.
All right. Now, you have laid out, I think in at least one document that I received a while ago, fiscal 2005 operating budget outlook, the little short version. And I don't know what the -- There's no page number on it, but it talks about defining the solution. And Miss Moore, you led your comments by talking about basically you don't want to go back to where we were last year. So why don't we talk about what the options are, and then what we're going to try to accomplish this year.
Here are the things that we have outlined in the budget books that we distributed. One is... Our top priority, obviously, would be enhancing subsidy. 395 Whole - Operating Budget - 5/4/04
Then we also alert the public that there are other possibilities. One, do the entire $70 million, say, with a fare increase or do the entire $70 million with service reductions or obviously some combination thereof. The fourth one is continue service levels at the same pace that we have now until there is absolutely no more money.
Now, I mean your name, other than Miss Moore, is the Southeastern Pennsylvania Transportation Authority.
And so why don't we call option number four the operate until the funds run out. I mean, obviously, you're not going to do that, right?
Okay. So, I mean, is it fair to say that... I mean, we need to take that off the table. I mean, that wouldn't even be responsible. I mean, you wouldn't do anything irresponsible.
I would not do anything irresponsible, but we also felt that it was necessary to let the public know all the options that might exist.
I understand that. And last year we had the dual experience of proposed significant service reductions. We know what the reaction was.
By both the public, and I think even elected leaders. 397 Whole - Operating Budget - 5/4/04 And it can not be good transit policy, because you're a transportation entity, to reduce service while you're trying to provide a transit service to the public, right?
Correct. It goes against what we -- what we basically stand for, correct.
Okay. And we also know that a fare increase is not going to make more people take the system. Right? I mean, you may get a momentary increase in revenue until people can figure out something else to do, but it actually will drive customers away.
With fare increases, there tends to be some reduction in ridership, yes.
Okay. And our fare at the moment is... Is it accurate to say that we are one of the highest, the 398 Whole - Operating Budget - 5/4/04 highest, tied with the highest for fares of major transit systems across the country?
Our base fare, it is fair to say that we are among the highest.
Among the highest. Okay. So, I mean, doesn't it ultimately lead you to the only real viable long-term solution is to get increased subsidy funding.
In my world? That would be the ideal situation, yes. A sustainable, predictable subsidy level, yes.
All right. But I mean, beyond ideal, I mean, because, you know, I mean, I've got some ideal situations that are probably never going to happen, you have gone down the subsidy -- dedicated subsidy road before, no pun intended.
You've had some success in the past. Time has moved on. 399 Whole - Operating Budget - 5/4/04 Other transit systems are experiencing the same kinds of problems across the Commonwealth; is that correct?
I mean, we are not the only transit system in the State of Pennsylvania that's having a funding problem.
No, sir, we are not. There are about 70 others, and it's safe to say that most of us are in the same position.
Okay. But as much as people may want to think about SEPTA, and based on where you're located, and your offices -- And we've gone through sizable contributions that the City makes and the sizable ridership support that's provided, the name of the entity, I think, speaks to the kind of relationship and 400 Whole - Operating Budget - 5/4/04 partnership because it's actually not called the Philadelphia Transportation Authority; it's called the Southeastern Pennsylvania Transportation Authority, correct?
And that means that it's Philadelphia, Bucks, Chester, Delaware, and Montgomery Counties.
So why don't we talk a little bit about -- You mentioned the coalition. Now, as you mentioned, that a couple of your board members were not necessarily aware of today, in terms of the hearing, although I did mention to, actually, Mr. DiCicco last night...
...at a social 401 Whole - Operating Budget - 5/4/04 event...
...hosted by Councilman Kenney, that I expected to see him today, he looked at me a little strange.
Well, people look at me strange all the time. I mean, I didn't take anything from it. But I would also ask if you could keep me informed of these coalition activities. I would like to be a supporter. I would like to be a friend and an additional voice in this coalition effort. I think the only way anything is going to happen here is if we utilize the strength of the name in the counties and the representation. This is not just a Philadelphia issue. It's not just a Southeastern issue; it's a Pennsylvania 402 Whole - Operating Budget - 5/4/04 issue. And joining with these other folks. So I would ask you to please keep me informed. I'd like to play an appropriate part and role in trying to be helpful and supportive. I think it also is important, though, that Philadelphians and people who care about Philadelphia and the Southeastern region have a better understanding of what SEPTA represents. You're, you know, right on the edge of being a billion dollar operation. You move people from place to place.
Economic development, in many instances, does not happen without transportation. We've had Delaware -- Schuylkill Valley Metro discussions, and what that can mean to the region, from an economic development standpoint, and meetings that we had with Senator Specter, and the like. So I think that I'd like to ask you, I guess in a more official way, and not 403 Whole - Operating Budget - 5/4/04 challenging anyone, but being a true transit person, to take a position that says we're not looking at, we're not thinking about... Recognize we have to let the public know certain things, but that we're not going to replicate last year's hysteria. We're going to pursue dedicated funding with a passion and an intensity that obliterates any other discussion about fares, increases, or service reductions or anything, because we're a transit agency, and that's what we want to do. We want to move people from point A to point B and get them back. And I think let that message go out, and articulated in a way that folks really understand it's not a game, it's not a process. It's only what it is, which is pursuing a dedicated funding source to help this agency and all the other, the 70 others that you mentioned across the Commonwealth. Let's talk about some of the things 404 Whole - Operating Budget - 5/4/04 closer to home. The Market Frankford El Project. Last year a significant amount of discussion about the project, how it was going, how some parts weren't going, business impact on Market Street. Give me, if you can, a thumbnail sketch or an update on what's going on out there, how much progress is being made, and what are we doing to assist the businesses out there.
Councilman, are you asking just the construction type things or do you want us to get into the outreach piece first, as in stage of completion, number of --
Why don't me talk about stage of completion quickly, and then let's talk about outreach.
All right. To date all the major contracts have been awarded. All the construction contracts have been awarded. We have pieces that are further along. We have one piece that's just about 405 Whole - Operating Budget - 5/4/04 done. In total, that project is about percent done, so we still have a long way to go.
The foundation piece is 7 pretty much done. It's moving along very 8 nicely. The guideway and the station 9 packages have not really significantly 10 begun. 11
Let me ask for 12 this. Putting aside whatever committee I 13 may chair, Councilwoman Blackwell and I -- 14 She chairs also the Finance Committee and 15 now I chair Transportation. But we share 16 Market Street, the bulk of it, at least 17 down to 54th Street. It would be very helpful in keeping track of this project if we could get something somewhat similar to the kinds of reports with greater accuracy. We used to receive a monthly report on the two stadium projects, both in terms of the contracting, the participation, the employment, and the participation and 406 Whole - Operating Budget - 5/4/04 diversity of work force, as well as some sense of stage of completion. What would actually really help is if I could have a longer... It's not all going to fit on one sheet, but if you could actually lay out a schedule that shows the anticipated phases of completion on a long-term basis, that would be very helpful, and certainly for any of the other any... any other member of Council who is interested. And so if you either forward it to the President as a part of this process or to both myself and Councilwoman Blackwell, then we can distribute it to the members. We need to stay on top of that. Tell me about... Do you have any data on minority, female and disadvantaged business participation, since all the contracts have been let at this point?
Yes, I do. Let me get the folder. This is information as of February 2004. Just as a reminder, there were EEO goals. And this would be for the 407 Whole - Operating Budget - 5/4/04 individuals. These are people related. We had a minority goal established of 26.4 percent.
This is work force, correct. Again, as of February 2004, we had 25.68 percent, so slightly under the goal. We had a female goal of 6.9 percent. We're not faring so well there. We only had an achievement rate of .25 percent. We had a residential goal of 10 percent, and we are at 10.5 percent. Do you want the businesses?
Okay. Right now we have a DBE commitment rate of 17.5 percent, and that's on all contracts combined. As a reminder, the two contracts, the two big contracts, the stations as well as the gatway have not -- we don't have major construction yet, so the achievement rate there is two percent. But there's, 408 Whole - Operating Budget - 5/4/04 again, a significant amount of the work that --
Tell me about the 17.5 number. That was the business goal?
That is the DBE business goal, correct. I mean, that is the committed goal. As contracts have been awarded, the commitment for DBE is totaling and a half percent, so roughly $74 12 million. 13
I'm sure we went 14 painfully through this last year, but why 15 is it that on such a project, and given its 16 location, although maybe location shouldn't 17 matter at all, why is that number so seemingly low, as compared to some other projects that have taken place in the City?
We did sort of go through a lot of this last year. If -- If -- I have those flashbacks. What we do for DBE, we have an overall goal for SEPTA, and then we have to do -- For every construction contract, we 409 Whole - Operating Budget - 5/4/04 have to do an individual DBE goal. It has to be established based on the number of certified DBEs that we have in our existing database. When we pull the goals together, again, for each one of the contracts. We have general contractors, mechanical contractors, et cetera. Some of those numbers tend to be low for some of those specialties.
Right. Okay. You're going to -- You'll give us a full report on that.
Okay. Now, what I'd like to do is work with your office, just to make sure the format is one that could be acceptable, before we even send it over for everyone.
Thank you, 410 Whole - Operating Budget - 5/4/04 Madam President. I conferred with my colleague, Councilman Nutter, before he started, to ask if he would push his pause button and allow me to answer my few, short brief questions, and then he will resume.
Okay. Thank you. Thank you, Councilman Nutter. Just a few comments and a couple questions. One, I would like to formally commend the work of Portfolio Associates and Jim Baker and Associates because I believe they're on the front line daily, with regards to the enormous project there on Market Street, and also speak to the close link that exists between them and your Government Affairs Division of SEPTA. I'm aware of that because we get calls in our office, and there's a constant outreach to respond to needs and interests of businesses along that corridor. And they're on the front line, 411 Whole - Operating Budget - 5/4/04 trying to make it work or trying to help them overcome the challenges that are before them. Given the awkward start, with regards to the Market Street project, particularly around businesses being kept whole, speak to a few lessons learned from those early years and what kind of systemic changes you've made to eliminate some of those hurdles and barriers.
Well, I can tell you that from my perspective, I don't think that we adequately prepared the community for the project. Even though we were engaged two, three years ahead of the project, I don't think we did enough serious reality checks to make sure that the community was aware of just how wonderful the project's going to be but how painful it would be before that beautiful project is completed. So... We were out there often. We gave a lot of messages, but we should have made it painfully clear that it was going 412 Whole - Operating Budget - 5/4/04 to be very troublesome for that community.
When you say community, are you saying the residents, separate from the businesses, separate from --
Councilwoman, I am including everybody. I am saying that we should have... While we had a lot of outreach, we had a lot of activity, we should have just made absolutely sure that the residents, the businesses, everyone along that corridor really understood how the project would look, including some tours up to the Frankford side so they could see for themselves just how the project might be progressing or their project might progress. So, I think there will be renewed emphasis on how we do outreach, the messages that we send, and just make sure that everybody is in the same boat -- in the same boat before we really get heavy into construction.
What I can say 413 Whole - Operating Budget - 5/4/04 is that the community meetings that happen on a monthly or bimonthly basis, I don't go but I do send a staff person. They are purposeful.
They're necessary, and they're informative. So given that, and given your observation of the first few years, what tactical or tangible add-ons do you see to overcome what you just cited?
I think the overall approach we took was fantastic. I do believe that having community meetings starting as early as we did -- And that did cause some concern, with respect to dollars and cents. But I think it was absolutely necessary for us to be out there out front. I think the delivery of some of the messages... We talked more about how beautiful the project might be, and we really got a lot of people really engaged in how wonderful the project would be, but I don't think we all, at the same time, 414 Whole - Operating Budget - 5/4/04 gave them some of the realities of how dirty it would be, and how the construction efforts might impact their lives; and just how beautiful it would be, but how painful it would be as we get along. So I think in those messages and in those community meetings which we will continue for major projects, we just have to pepper it with some additional doses of reality.
Is that any difference from the experience in Frankford?
I think with Frankford we, unfortunately, might have started out along the same path, and had to do some reality doses as well. I guess I'm just, again, speaking from hindsight because I had the opportunity to study it as General Manager, as opposed to having been engaged in those activities. But I do believe throughout any major project we have to now continue to 415 Whole - Operating Budget - 5/4/04 emphasize that there is pain with construction. It's just not a beautiful thing that happens overnight.
Okay. Then finally, I'm sure Councilwoman Jannie Blackwell can speak to this more fluently, but I followed in a peripheral way the dollars that she and I believe it was Congressman Fattah were able to get to make whole, as much as you could make whole, those businesses that were suffering out there. Could you speak to the status or progress with regards to that?
I'm Frances Jones. We have been working closely with the Councilwoman's office to address the needs of the businesses on the corridor. And we heard over and again that there were businesses that were suffering as a result of the project. We do know, and as the General Manager stated, that we are -- the construction part is going to be difficult. The Councilwoman has worked with the 416 Whole - Operating Budget - 5/4/04 businesses, have had meetings with us with the businesses, and has put together a plan where there would be some compensation for businesses that are directly impacted, as well as those that are indirectly impacted by the project. So the emphasis, initial emphasis would be on the businesses that are on Market Street, but there would be some consideration given to businesses on the spokes or on the side streets.
With some requirements attached to those dollars that would be available.
Okay. This is an aside. I'm not intimately involved with the outreach strategy, but I'm always concerned about connection to dialogue with the schools in that area that would be affected as well. Can you speak to that?
There is a program that we implemented, we structured very early on in the engineering, and the -- I'm sorry -- 417 Whole - Operating Budget - 5/4/04 in the outreach phase, where we would work -- we would be working directly with the schools, particularly around safety because you know that children are drawn to construction areas like magnets. And so, we have a video that we put together that we use for the children in the schools during the school year, but we also take that same video around to the day camps and other facilities during the summer --
-- so that message is fresh in the children's mind on an ongoing basis. Also, we have a safety component within SEPTA, and so that person who's responsible for that has coordinated with us and is going out to talk to the children about general transportation safety. So it's a two-pronged approach. Because children are using the system during construction, and the construction is going on at the same time, 418 Whole - Operating Budget - 5/4/04 we needed to do it on a two -- as a two-pronged approach.
Excellent. I'm happy to hear that. You can never do too much of that information for children, ever. Final two things. And I know that most of your meetings are held at churches. So that's a good thing. Clergy. Has there been any conversation, dialogue, sit-down with members of the Black Clergy from that area? Because they, too, have a constituency that they keep informed about major initiatives.
Councilwoman, our meetings... We try to just hold our meetings in the community where there's a facility that is large enough to accommodate our numbers.
And we've gotten to the point that some of our meetings are 150 to 200 which is really just a microcosm of the community in which the project services and 419 Whole - Operating Budget - 5/4/04 is impacted. But any facility that is available we use. The churches have been a little bit more open with us in utilizing the facility. We have a component that's a part of our outreach which deals with the clergy and the religious institutions within the community.
And so they are briefed on an ongoing basis as well. We've also provided informations that they can provide to their congregants, who in most instances are users of the system, that they distribute on Sunday. So there has been a working relationship with the religious community in the project area.
Very well. I thank you for that. I'm encouraged. Finally, I, too, will look with interest to the report that Councilman Nutter has requested. MBE WBE concerns resonate in this chamber on a daily basis. 420 Whole - Operating Budget - 5/4/04 And where there are public dollars, we really do expect equity for those audiences. And so, I'll look with interest for that report. But I was struck by the number you gave. And I know the report is coming. You said the achievement rate was 4.5 percent. Is that what you stipulated in your comments? You gave one number for and a 12 half percent. And did I hear achievement 13 rate of 4.5 percent? 14
The committed rate for 15 DBEs -- and that's the individual firms -- 16 of 17.5 percent. That's the commitment 17 rate.
So when we do all the contracts, that's what the primes have committed to for DBE participation. The DBE achievement to date is about 4.7 percent, but the further caveat is a significant amount of the construction contracts, we have not had a significant 421 Whole - Operating Budget - 5/4/04 amount of activity yet.
I see. So are you okay with that, pleased with that, enthusiastic about that rate? Where are you?
In some areas enthusiastic because in the professional categories, we did have one or two minority firms that came in, not as DBEs or subs, but as primes. So that's -- that part is encouraging. For some of the... Some of the numbers were low. And when we came in last year we -- you know, we sort of made the effort after that to go forth and get even more DBE firms. So we're happy with the progress in the number of DBE firms that we have become -- that have been eligible, DBE certified.
So we have mixed things. We feel good about some in... the fruition of the some of the initiatives that we've undertaken. 422 Whole - Operating Budget - 5/4/04 But some of the historical things, some of the numbers were low. And some of them were low because we did not have a lot of certified DBEs within our database.
Okay. Well, again, like Councilman Nutter and others, I look forward with interest to those reports on a daily -- regular basis, however you decide we want to receive them. Thank you, Councilman Nutter, very much.
Thank you. Miss Moore, let's stay in the kind of the money area. We'll get together and talk about how we sort through the information. What's the size of your Capital budget?
It's about $485 million annually. You want exact numbers? The Treasurer does happen to have one. For 2005, $427 million.
Okay. And 423 Whole - Operating Budget - 5/4/04 what's the source of those funds?
On the percentage basis, Federal is 45.6 percent. State is 44.8 percent.
They're grants. Okay. So you don't have any borrowing.
Yeah. I 424 Whole - Operating Budget - 5/4/04 thought. When's the last time you were in the capital market?
We have borrowings. The debt service is accounted through our operating budget.
Through you're operating. Okay. And when you were last in the market, 2001, what was it for?
We're trying to think because we actually -- It was part of our refinancing, to take benefit of some of the lower interest rates.
Right. But part of the refinancing was for the Market Frankford cars.
And if these numbers differ, we'll circle back. But it's about -- I think it was about 200 million.
Okay. Let's talk about the infrastructure of the system, and what I guess people in the -- who are really in the business call it rolling stock, and all the... Who owns the Market Frankford El cars, the subway cars, the buses, the trolleys, and the infrastructure that goes with those?
You'd think that would be an easy, simple question, but... We have... We are party to the lease leaseback, the City of Philadelphia, as well as one of the counties. So there is a very complicated leasing arrangement with the City and that particular county. So the assets are sort of split up. In simple terms, the Broad Street Line is pretty much owned by the City. There is some discussion. I think the Frankford side of Market El is owned by the 426 Whole - Operating Budget - 5/4/04 City. The western part is owned by SEPTA. There's some questions about, like, Suburban Station and some of the rolling stock ownership, but that's -- it's cut up along those lines.
All right. Why don't you get us some more detail. Why don't you get us a detailed explanation and then the shorter version to go with it.
Okay? For your non-Federal projects, this... I mean some of the projects are non-Federal, I assume, right?
We have two primary, and those are for infrastructure renewal and our vehicle overhaul. They are pretty much done within the state. But almost every other project we have in some shape, form or fashion has Federal money.
Okay. Why don't we talk about contracting. You, I assume, have a variety of contracts with different 427 Whole - Operating Budget - 5/4/04 law firms and other professionals?
Can you forward to us a list of the various law firms that you contract with, the fees that were paid to each during the course of the last three years. What other professionals do you hire for services to SEPTA?
Do you have a whole category of professional services? How would you capture or categorize those people?
Within the... They're covered in the Operating Budget. Are you asking... I'm not sure I understand what you're asking.
Okay. I'd like to have a list of all of the professionals that you contracted.
Okay. So you're looking for all professional services last three years.
If there's a contract, length of contract. Okay. What I'd like along with that is who they are, the names of the principals, the location of the business, and any information you have with regard to gender and race status of the owner of the firm. What is the... Does SEPTA have a residency policy for its employees?
Other than expected the General Manager will live in the five-county service area.
Okay. All right. Do you have many employees who live out of state?
Well, let me ask it this way: How many employees do you have?